Here in South Africa, you will most definitely need the cradle, reception is only good in suburban areas and on major routes. In addition to that, the cradle has got a building fan to keep the phone cool. Technically speaking, your audio/video bandwidth is also better if you use a cradle. I’ve got film on both sides of my iPhone and slip it in a pouch when out of the car.
Besides, the iPhone is a beauty and should not be hidden away in a enclosure.